Helmy, Hamza & Partners, Baker McKenzie Cairo office, has advised the National Egyptian Railway Industries Company (NERIC) on its first offtake and supply agreement with Hyundai Rotem, the South Korean heavy industry company and the National Authority for Tunnels (NAT).
Under the terms of the agreement, the consortium of NERIC and Hyundai Rotem will manufacture and supply to NAT 40 new trains consisted of 320 rolling stocks for the second and the third metro lines in Cairo. This is a major milestone towards localizing the manufacturing of rolling stocks in Egypt at NERIC plant located in East Port Said Industrial Zone in a prospective area of c. 300,000 m2 in the Suez Canal Economic Zone. The Egyptian strategic 2030 Vision is one major step ahead by closing this deal which was signed on 24 August 2022.
Baker McKenzie Cairo advised NERIC on reviewing the rolling stock supply, localization contracts made with Hyundai Rotem.
Commenting on this first-of-a-kind transaction, Mohamed Ghannam, Managing Partner and Head of Banking, Finance and Projects at Helmy, Hamza and Partners, Baker McKenzie Cairo office said, “We have been working with our client on this fantastic project for quite some time supporting them to legally bind contracts and share expertise.” “This transaction is an exceptional achievement for Egypt. It underlines the importance of further developing the industrials field in Egypt with an aim to create new job opportunities for the local population and strengthening their skills in the heavy industry area.”
The Helmy, Hamza & Partners, Baker McKenzie Cairo team was led by managing partner Mohamed Ghannam with assistance from counsel and co-head of antitrust and compliance Hesham Ragab as well as banking and projects associate Ahmed Shehata.